What is a DAO & Why Should I Care?

DAO stands for Decentralized Autonomous Organization. To anyone unfamiliar with them, DAOs can seem like an alien and complicated concept. But it doesn’t have to be.

Put one way, DAO technology uses smart-contracts and blockchain to create a trustless interface between respective parties (voters and proposers), allowing for the removal of middlemen and the automation of execution once pre-defined conditions are met. They can serve a variety of organizational objectives, ranging from platform development all the way to events management and anything, or a sweep of things, in between.

Put another way, they make it possible for small or large organizations to collaborate on a common purpose remotely, and in a democratic fashion. They help ensure TRUE stakeholders have REAL input, whilst empowering the wider talent pool of the world to more freely capitalize on their skills. A perfect example of this is necDAO.

Due to legacy organizational structures, exchanges have typically been governed from the top down. This means end-users rely on an over-stretched team of executives to tell them what they want. Or in the case of exchanges, what tokens they want to trade, what features they want to use or how and where to host an event. It’s our view that traders should have the final say, and DAOstack technology makes that possible.

WHY SHOULD YOU CARE?

We should all care. Over the past so many years, we have seen how centralized systems have got it wrong. Whether it’s lessons and the fallout from the 2008 financial crash or the general disempowerment of consumers and stakeholders as large scale organizations have grown exponentially, there is a growing need for a technologically enhanced system that minimizes structural weakness whilst strengthening the ability and incentives of stakeholders to play a meaningful part in the organizations they interact with.

It goes without saying, we are believers in DAO technology and we encourage our users and beyond to learn more. You can also get ahead of the curve and become an early adopter today by joining necDAO — the largest DAO as of 2019 with circa 17,000 ETH pledged. Get involved and play your part at the following links below.